CHAPTER-7 Findings, Conclusion & Suggestions

CHAPTER-7 Findings, Conclusion & Suggestions

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In this chapter, the researcher gives the findings, conclusions and suggestions.

The first section highlights the findings based on both primary and secondary

data. In second section highlights conclusions and third section includes

Suggestions.

SECTION FIRST

Findings refers to the information that researcher discovers, or opinions that

researcher receive after doing research. In other words findings are the principal

outcomes of a research project, what the project suggested, revealed or indicated.

This usually refers to the totality of outcomes, rather than the conclusion or

recommendation drawn from them.

7.0 FINDINGS FROM SURVEY

As far as analysis of primary data is concerned the researcher collected responses

from hundred respondents and analyzed the data with the help of appropriate

techniques. Finally, the researcher has come up with the following findings:-

Reasons for adopting the MAS: respondents of both the banks are agreed on

MAS for improving the productivity, efficiency and periodical checkup.

Therefore, there is no significant difference, ([email protected] level of significance) in

the responses of PNB and HDFC Bank.

In reference to objectives of MAS: respondents of both the banks are agreed on

MAS for increases the profits of the organization and achieving the objectives

set by the organization. Hence, with reference to all the objectives there is no

significance difference, ([email protected] level of significance) in the responses of

PNB and HDFC Bank.

Perception of respondents, regarding the advantages of MAS: respondents of

both the banks are agreed on MAS for efficiency, attainment of the organization

goals, increasement of ability of employees, checking management efficiency,


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business enjoying the better reputation. Thus, with reference to advantages

there is no significant difference, ([email protected] level of significance) in the

responses of PNB and HDFC Bank.

Regarding Profitability and MAS respondents of both the banks are agreed on

that parameter, NPA is managed and controlled by management audit and

improves performance, eliminates inefficiency and increase effectiveness and

profits of an organization. Therefore, with reference to profitability there is no

significant difference, ([email protected] level of significance) in the responses of PNB

and HDFC Bank.

Perception of respondents with reference to Efficiency and Effectiveness of

MAS: respondents of both the banks are not in agreement on the parameter

that MAS is a tool to evaluate the efficiency of management and employees at

all levels of their organization. Hence, with reference to efficiency and

effectiveness there is significant difference, ([email protected] level of significance) in

the responses of PNB and HDFC Bank.

7.0.1 FINDINGS FROM SECONDARY DATA ANALYSIS

On the basis of secondary data analysis the researcher comes up with the

following findings:-

The analysis reveals that the score of MAS in PNB during study period in the

selected years (2005-06 to 2009-10) shows an increasing trend, whereas the

score of MAS in HDFC Bank shows almost steady trend. In this way PNB is in

a better position than HDFC bank.

The analysis clearly shows that there is a significant difference in the mean

score of internal control of two banks, the t-value is 6.56([email protected] level of

significance). Therefore, researcher rejects the hypothesis which means that

on the basis of mean scores of MAS both the banks are not equal to each


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other. Mean score of MAS in PNB (6.46) is greater than that of HDFC bank

(5). MAS in PNB is better than HDFC bank.

Regarding the Credit audit & review, there is significant difference in the

mean score of Credit audit & review of the two banks. The t-value is

2.00([email protected] level of significance). Therefore, researcher rejects the

hypothesis which means that on the basis of mean scores of MAS both the

banks are not equal to each other. The mean score of MAS in PNB (6) is

greater than that of HDFC bank (5).

In reference to Cash Management Services, there is a significant difference in

the mean score of Cash Management Services of the two banks. The t-value

is4.08([email protected] level of significance).Therefore, researcher rejects the


banks are not equal to each other. The mean score of MAS in PNB (8.8) is

more than HDFC bank (6).

The analysis reveals that there is a significant difference in the mean score of

Risk Management of the two banks. The t-value is 14.00 ([email protected] level of

significance). Therefore, researcher rejects the hypothesis which means that

on the basis of mean scores of MAS both the banks are not equal to each

other. The mean score of PNB (10) is more than that of HDFC (7.2).

Regarding Information Technology, there is a significant difference in the

mean score of Information Technology of the two banks the t-value is


hypothesis that means on the basis of mean scores of MAS both the banks are

not equal to each other. The mean score of PNB (8.58) is more than HDFC

(7.96).


score of Management Information Technology of the two banks, the t-value

being4.00 ([email protected] level of significance). Therefore, researcher rejects the


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banks are not equal to each other. The mean score of PNB (6) is more than

that of HDFC (5.2).

The analysis reveals that there is no significant difference in the mean score of

Non-Performing Assets Management of the two banks the t-value is

0.49([email protected] level of significance). Therefore, researcher accepts the


equal to each other.

In case of Citizen’s Charter, there is a significant difference in the mean score

of Citizen’s Charter of the two banks, the t-valuebeing39.00 ([email protected] level

of significance). Therefore, researcher rejects the hypothesis that means on

the basis of mean scores of MAS both the banks are not equal to each other.

The mean score of PNB (9.8) is more than HDFC (2).

The analysis clearly shows that there is no significant difference in the mean

score of Right to Information Act of the two banks, the t-value being1.31

([email protected] level of significance). Therefore, researcher accepts the



The analysis clearly shows that there is no significant difference in the mean

score of Customer care center of the two banks, the t-valuebeing-

0.45([email protected] level of significance) Therefore, researcher accepts the



In case of Spearman’s coefficient of rank co-rrelation between PNB and HDFC

Bank there is a positive moderate correlation (R=0.49) it clearly shows the

parameters rank of the two banks is not moving with same pace.


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Regarding the trend of MAS for study period in selected banks, the b- value of

PNB (0.29) is far ahead to HDFC Bank (0.02). The equations in both the

banks are as follows:-

For PNB: 𝑌 = 15.32𝑎 + 0.29𝑏𝑋

For HDFC Bank: 𝑌 = 11.72𝑎 + 0.02𝑏𝑋


score of MAS in PNB 77.54 and HDFC Bank 58.88.The t-value is


hypothesis and concludes that on the basis of mean scores of MAS both the

banks are not equal to each other. Regarding overall performance PNB is

better than HDFC Bank.

Analysis of the relationship of MAS with Employee’s Productivity in the

selected banks. Clearly shows that there is no significance difference in the

MAS and Employee’s Productivity in PNB and HDFC Bank. The z – value is

1.95([email protected] level of significance). Therefore, researcher accepts the

hypothesis that the MAS and Employee’s Productivity are independent to

each other. Further, the result reveals that correlation between MAS and

Employee’s Productivity in HDFC Bank is negative (-0.83),whereas in PNB it

is positive (-0.64).

The analysis of impact of MAS on Profitability of both the banks reveals that

in case of Net Profit Ratio there is a significant difference in the MAS and

profitability of both banks, the z- value is 2.14([email protected] level of

significance). Hence, the researcher rejects the hypothesis that MAS and Net

Profit Ratio are not independent to each other. Further, the result reveals that

correlation between MAS and net profit ratio in HDFC Bank is negative (-

0.69), whereas in PNB it is positive (0.86).

The analysis reveals that in case of return on investment ratio, there is no

significant difference in the MAS and return on investment ratio in PNB and


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HDFC Bank. The z- value is 1.08 ([email protected] level of significance) Hence,

researcher accepts the hypothesis that MAS and Return on Investment Ratio

are independent to each other. Further, the result reveals that correlation

between MAS and Return on Investment Ratio in HDFC Bank is negative

(-0.34), whereas in PNB it is positive (0.62).

In case of return on total assets, there is no significant difference in the MAS

and Return on Investment Ratio in PNB and HDFC Bank. The z- value is

0.92([email protected] level of significance) Therefore, researcher accepts the

hypothesis that MAS and Return on Total Assets are independent to each

other. Further, the result reveals that correlation between MAS and Return on

Total Assets in HDFC Bank is negative (-0.09), whereas in PNB it is positive

(0.68).

In reference to Overall Profitability Ratio, there is no significant difference in

the MAS and Overall Profitability Ratio in PNB and HDFC Bank. The z- value

is 0.66([email protected] level of significance). Hence, researcher accepts the

hypothesis that MAS and Overall Profitability Ratio are independent to each

other. Further, the result reveals that correlation between MAS and Overall

Profitability Ratio in HDFC Bank is negative (-0.16), whereas in PNB it is

positive (0.46).


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SECTION SECOND

The word conclusion is defined as finality, fulfillment, closer or realization.

Conclusion means to reach an opinion, mate a decision, or resolution regarding a

subject.

7.1 CONCLUSION

INTRODUCTION

A detailed study of the research work carried out in respect of ‘A Comparative

Study of Management Audit System between Punjab National Bank and HDFC

Bank Ltd. in India’ has been analyzed and reported in the preceding chapter. The

vital objective of concluding this chapter is to briefly summarize the important

contribution of the research work carried out, to pick out the major limitation

and to mention scope for further research work in this area.

CHAPTERWISE SUMMARY OF RESEARCH CONTRIBUTION

The main focus of the present research work is on evaluating the MAS in selected

private and public sector bank and analyzing the contribution of MAS in

increasing or decreasing the profitability of the bank, efficiency & effectiveness of

employees.

The research work is initiated with an introduction to MAS (History, Meaning

and Concept of MAS, Definition of MA, Salient Features of MAS, Need for MAS,

Objectives of MAS, Advantages of MAS, Disadvantages of MAS, Working

Procedure of MAS, Scope of MAS, Management Audit - Need of Hour,

Appointment of Management Auditor, Management Auditor’s Report, and

Company profile of the selected banks). Further, the researcher has given a brief

account of related review of literature carried out at both National and

International level.


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Chapter third of the research study Nature and Present Status of MAS in Selected

Banks’ describes the policies and procedures followed by the PNB and HDFC

Bank on the basis of the following parameters: Internal Control, Credit Audit

Review, Cash Management Services, Risk Management, Information Technology,

Management Information System, Non-performing Asset Management, Citizens'

charter, Right to Information Act, Customer care Center. The present study

reveals that on the basis of the selected parameters public sector bank PNB is

better than HDFC Bank in the light of polices and procedure followed by the

banks.

In chapter fourth is Comparative Analysis of MAS in both the Selected Banks’.

For this purpose, secondary data have been explored from the annual report of

both the banks. In order to have precise comparison between the two banks,

hypotheses have also been tested and statistical tools score chart, mean,

Spearsman’s rank correlation coefficient, Karl Pearson’s coefficient of correlation,

regression and student t-test have been applied. After analyzing the comparison

of MAS in both the banks, PNB is found better than HDFC Bank on the basis of

selected parameters.

Chapter fifth of the research study comprises of Relationship between MAS &

Employee’s Productivity and Profitability of Selected Banks. This chapter

includes concept of employees’ productivity, employees’ productivity in banks,

relationship between MAS & Employee’s Productivity and comparison of PNB

and HDFC Bank on the basis of employee’s productivity. When compared, the

employees’ productivity of PNB is better than that of HDFC Bank because

employees’ productivity is a positive aspect which no company would like to be it

as negative. The relationship of MAS & employees’ productivity in HDFC Bank is

negative, whereas in PNB it is positive. Therefore PNB is better than HDFC Bank

in this respect also.


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In the last chapter, primary analysis has been done to understand the perception

of respondents about the concept of MAS in present scenario. In view of

respondents, PNB is better than HDFC Bank in reference to awareness,

advantages, relationship of MAS with profitability, and relationship of MAS with

efficiency & effectiveness in the selected banks.

In a nutshell, MAS is better in public sector banks than in the private sector

banks. To resolve this problem, private sector bank must look upon the loopholes

in implementation of MAS in their banks, and as far as government is concerned.

Government should make MAS compulsory in both types of organizations in

India.

SECTION THIRD

7.2 SUGGESTIONS

On the basis of analysis & findings, the researcher puts forwards the followings

suggestions. The researcher hopes that these suggestions will be useful to the

banks in improving their efficiency & transparency in their working. These

suggestions will also be useful to the regulatory bodies like the RBI to make the

industry more accountable to the authority as well as public.

The researcher feels that MAS should be mandatory in financial sector in

general and in banking sector in particular.

MAS should be part of periodical exercise of internal audit in banking

industries.

For commencement of a management audit, the authority should ascertain

the following:-

Objectives and goals of the enterprise with a view to assess the possibilities of

getting the desired results through them.


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Suitability of policies, plans and procedures lay down by the management.

Effectiveness and credibility of the communication system including

management information system of the organization.

Standards of performance set by the management.

Efficiency and economy of resources input.

Results reveals that PNB is better than HDFC Bank as far as the employees’

productivity is concerned, because in PNB the correlation value between MAS

and employees’ productivity is 0.64 which is positively correlated whereas in case

of HDFC bank the correlation value between MAS and employees’ productivity is

-0.83 which is negatively correlated which implies that employees’ productivity is

negative in private sector bank which is not recommended. Private sector takes

MAS seriously to increase the employees’ productivity of the bank because

implementation of MAS helps in increasing efficiency and effectiveness which

results in higher employees’ productivity of the bank. MAS should be made

mandatory in private sector banks because it is beneficial for banks in many

ways.

Results reveal that PNB is better than HDFC Bank as far as the profitability is

concerned because in PNB profits is increasing and number of employees is not

increasing in that ratio which shows higher profitability, but in case of HDFC

bank profit is decreasing and number of employees is increasing which shows

lower profitability. Private sector takes MAS seriously to increase the profitability

of the bank because implementation of MAS helps in increasing efficiency and

effectiveness of employees which results in higher profitability of bank. MAS

should be made mandatory in private sector banks because it is beneficial for

banks in many ways.


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The following circumstances should also be taken into consideration by the

banking sectors as they are needed to improve productivity and efficiency: need

for the organization to survive, foreign collaboration, to examine management

ability because they also play a vital role in the development of Management

Audit.

Management Audit helps in attainment of various objectives in an organization.

Optimum utilization of organizational resources helps in ascertain whether the

management policies are effectively used or not. These objectives should also

consider by the organization while performing Management Audit.

Apart from various advantages of MAS in banks the adjectives of MAS, such as;

optimum utilization of organization resources, better delegation of authority and

responsibility, protection of work standard, to check management transparency

these should also be kept in mind by the organization.

Analysis of the study also reveals that MAS helps in increasing the profitability of

the bank. The banks should also consider Management Audit before advancing

loans or to fund against equity capital of the organization. NPA (Non-Performing

Assets) too is managed and controlled by Management Audit.

Analysis of the study reveals that MAS helps in increasing the profitability of the

bank. The banks should also consider Management Audit help to determine

whether sound management exists at all levels, ensuring effective relationship

with the outside world and internal efficiency. Management Audit aims at

discovering errors and fraud which ensures the employees being wary of

Management Audit and performing their work more efficiently. Management

Audit helps in finding out the inefficient resource of in management and

employee working. Management Audit helps in verifying that the information

used by the management to control the understanding is adequate.


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7.3 SUGGESTIONS FOR FURTHER RESEARCH

The researcher while summing up her work would like to state that though the

study was carried out with utmost sincerity, scientific approach and painstaking

efforts, yet it has a few limitations. The researcher therefore apologizes from the

core of her heart if this study could not meet one’s expectations. The researcher

also firmly believes that “No work is complete till you stop trying.” There is

always a room for further improvement with contemporary changes.

In the light of this statement, the researcher would suggest for further research

activities to be carried out related to this area, to incorporate more organizations,

having a larger sample and to involve some more parameters of MAS. Since

research work is an ongoing process, the study instead of blocking, opens the new

avenues for further enriched, varied and improved versions of the present study

in future.

Documents

CHAPTER-7 Findings, Conclusion & Suggestions